Daijiworld Media Network - Mumbai

Mumbai, Mar 31: Gold prices surged to an all-time high of $3,106 per ounce on Monday, fueled by increasing investor demand as economic and geopolitical uncertainties continue to mount.

The precious metal has seen a stellar 18% rise this year, attracting both retail and institutional investors. Major financial firms, including Goldman Sachs, Bank of America, and UBS, have revised their gold price targets upwards in response to the bullish trend.

A recent BofA Global Research report suggests that gold could climb to $3,500 per ounce within 18 months, provided that non-commercial purchases see a 10% increase. The report also notes that central banks may expand their gold reserves significantly, potentially raising their holdings from an average of 10% to over 30% for better portfolio efficiency.

In India, gold has outperformed most asset classes in 2024, delivering a remarkable 21% year-on-year (YoY) return. The country's investment appetite for gold remains strong, reflected in record inflows into gold Exchange-Traded Funds (ETFs).

Indian gold ETFs attracted net inflows of ?112 billion, adding 15 tonnes to their holdings, which reached 57.8 tonnes by year-end, according to Motilal Oswal Private Wealth.

The Reserve Bank of India (RBI) also increased its gold reserves significantly, acquiring 72.6 tonnes in 2024, bringing its total holdings to 876 tonnes. This marks the seventh consecutive year of RBI's gold accumulation, with gold now making up 10.6% of India's foreign exchange reserves.

While rising prices have dampened demand for gold jewellery, investment in physical gold—particularly bars and coins—remains strong. Experts suggest that gold serves as a reliable long-term asset, while silver could be a more tactical allocation for short-term investors.